East Arm the ‘perfect location’ for multi-million dollar US military fuel storage facility

DARWIN’S East Arm is the perfect location for a new multi-million dollar US Defence fuel storage facility, according to the NT’s Land Development Corporation

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DARWIN’S East Arm is the perfect location for a new multimillion US Defence fuel storage facility says the chief executive of the NT’s Land Development Corporation (LDC) Tony Stubbin.

Mr Stubbin said the Land Development Corporation has sites earmarked for the this purpose ready development.

Mr Stubbin said the LDC is already working with a number of proponents.

Last week the NT News revealed US Defence is going ahead with plans for fuel reserve facility in Darwin to ensure its war machines are not left stranded if fuel supply lines are disrupted in the region.

General manager of Land and Development Corporation Tony Stubbin says East Arm has great potential as the location for a fuel storage facility. Picture: Elise Derwin

The US combat logistics support agency DAL Energy is seeking information on industry capabilities to undertake the project.

Included in that capability must be the ability to store and issue 1.2 million barrels of aviation turbine fuel, and 700,000 barrels of commercial jet fuel in the Port of Darwin.

“We have an 8.8 hectare lot next to the Vopak fuel terminal at East Arm, which has been earmarked as the next fuel storage reserve for Darwin,” Mr Stubbin said. “There is also another large lot alongside which is close to the Ghan rail terminal. Plus there is land across the road.

“We have been working with a US company and they partner with a local developer.

“They are working together on the US Defence proposal and they are also looking at the Australian Government’s fuel reserve initiative.

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“We are also talking to a few other companies who are very interested.

Mr Stubbin said the NT News story about the US intentions sparked a lot of interest.

“The US one is really exciting because they have nominated Darwin and they have nominated 300 megalitres as the requirements,” he said.

“This is almost twice as big as Vopak. This would be a boost for the Territory.”

Mr Stubbin said the LDC has submitted East Arm sites to be considered as part of the Federal Government’s Boosting Australia’s Diesel Storage Program which is aimed at increasing onshore diesel stockholdings and protect the nation’s fuel supply.

Applications have opened to be a part of the $200m program, which the Top End is ­expected to feature prominently in.

Federal Energy and Emissions Reduction Minister Angus Taylor said the government wanted to target projects that enhanced fuel security by being in a strategic regional location or that were connected to existing fuel infrastructure.

“We have had a number of Australian companies speaking to us and they are in the process of putting their submissions together,” Mr Stubbin said.

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“We know that 300 megalitres has come up under the US fuel facility and there is room for a broader facility. It would have the advantage of being next to the railway, so putting fuel on it and transporting fuel to RAAF base Tindal could be an attraction.

“There are a lot of positives in the East Arm location and people see diversity of fuel storage in Darwin as a positive.”